Finding Structural Problems During Escrow - Upscale Home Example
By Raynor James, Fri Dec 9th

When buying and selling homes, the property purchase is oftensubject to a satisfactory home inspection being done. Now andthen, a home inspection uncovers severe structural problems.Here's an example of a situation in an upscale neighborhood.

Severe Structural Problems

Does the buyer walk away when there are serious structuralproblems? Yes, but not always. A lot depends on the constraintsfacing the buyer (are they relocating to start a new job, orjust "moving up" in the same general area?) and on how much thebuyer likes the property. The attitude, maturity level,communication skills, and flexibility of both



buyer and selleralso make a huge difference.

It's easy to see a deal blowing up in this situation. Let metell you about a situation I saw that actually worked out.

Structural Problems - Upscale Neighborhood

The first involved two professional couples and a house onecouple wanted to sell and the other wanted to buy in anestablished, up-scale neighborhood. The house was a colonialstyle, all brick, very traditional house built about 15 yearsago using top of the line materials. The kitchen and bathroomshad been modernized and upgraded within the past 3 years. Top ofthe line materials (marble, ceramic tile, and granite) wereagain used.

The house was located on an acre lot that sloped gently down tothe street in the front. About 10 feet from the right side ofthe house, the lot sloped steeply away to a pretty stream. Thelot backed to a treed area of a beautifully maintained, historicestate owned by a university and open to the public on afee-paying basis.

The home inspector noticed that the chimney on the right end ofthe house was pulling away from the house. It was about 2 inchesaway at the top, but the bottom was still attached. In thebasement, there was some cracking along the wall the chimney wason. The home inspector would not certify the house asstructurally sound, but recommended that an engineering firmtake a look at it.

The buyer asked the seller to have an engineering study done.The seller was upset but didn't go to pieces. Something wascausing the chimney to pull away, so they called in an engineer.For legal reasons, the sellers also needed to understand whatthe problem was.

The engineer determined that shrink-swell soil was causingserious foundation problems. They recommended digging down a lotfurther than the original footers and constructing an elaboratenew support system. The sellers agreed to do it and the buyersagreed to delay closing until the work was completed. Thirtythousand dollars later (out of the sellers' pocket), thetransaction closed.

In Closing

When considering the above example, what is the moral? If youkeep a cool head and look for solutions, structural problemsneed not be a deal killer.

About the author:Raynor James is with http://www.fsboamerica.org - providing FSBOhomes For Sale By Owner. Visit our "sell my home" page athttp://www.fsboamerica.org/seller.cfm to list and sell your homefor free for one month. Visithttp://www.fsboamerica.org/buyer.cfm to see homes for sale byowner.

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